Our Proposals

The Investor Group has submitted two value-enhancing shareholder proposals for consideration at the Company’s 2024 AGM. We believe these proposals will help unlock value at Samsung C&T:


Proposal #1: Increased Dividend Distribution


We are proposing that a dividend of KRW 4,500 per common share and KRW 4,550 per preferred share be paid in respect to FY 2023.


Approximately KRW 740 billion is needed for the dividend payout, which can be sourced sufficiently from the distribution of 100% of the post-tax dividend income from Samsung C&T affiliates and 25% of free cash flow from operations (excluding Samsung Biologics).

We believe increasing the dividend payment will help align capital allocation to shareholder expectations, and set the tone for longer-term decisions to help reduce the steep “Korea Discount” that Samsung C&T faces today.


Proposal #2: Share Repurchase Program


We are proposing that the Company allocate KRW 500 billion to a share repurchase program.


This is equivalent to approximately 50% of annual free cash flow from operations (excluding Samsung Biologics) per Samsung C&T's own estimates for FY 2023-25.


Based on the Company’s 2023 year-end share price, approximately 3,861,000 shares can be repurchased, or 2.4% of total shares outstanding.5 This, coupled with an improved dividend yield of 3.5%, would bring the total shareholder yield to approximately 6% and help to narrow the discount.

A share repurchase program will enhance both earnings and intrinsic value per share, and in our view, demonstrate SCT’s commitment toward addressing its valuation problem and unlocking long-term value.

5 Based on the Company’s closing share price of KRW 129,500 as of 28th December 2023.

To realize Samsung C&T’s value for all shareholders, we believe that the Board must adopt a transparent, shareholder-friendly capital allocation framework that systematically considers the returns on different uses of capital, including growth investments and share repurchases.

The shareholder proposals do not preclude the Company from investing for the future, preserving ~25% of free cash flow from operations for other uses and potentially allowing capex to rise by over KRW 350 billion annually.


Longacre Square Partners
Greg Marose / Charlotte Kiaie


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